Bernstein Sees Upside for Alibaba (BABA) Amid E-Commerce and Cloud Growth

Alibaba Group Holding Limited (NYSE:BABA) ranks among the Best Low Volatility Investments in December 2025. On November 26, Bernstein SocGen Group maintained its Outperform rating for Alibaba Group Holding Limited (NYSE:BABA) but lowered its price target from $200 to $190. The adjustment came despite management’s optimistic tone during the recent analyst call, where Alibaba Group Holding Limited (NYSE:BABA) placed a strong emphasis on its artificial intelligence initiative.

Moreover, Alibaba’s second-quarter results, released on November 26, revealed revenues of RMB 248 billion, above consensus projections by about RMB 3 billion and representing a 5% year-over-year rise. The Chinese e-commerce and technology giant also revealed impressive cloud performance, with a 34% year-over-year growth in its cloud segment and a 10% year-over-year gain in Customer Management Revenue (CMR), which met market forecasts.

According to Bernstein, Alibaba Group Holding Limited (NYSE:BABA) is focusing on strengthening the relationship between its food delivery, rapid commerce, and core e-commerce operations in order to significantly reduce food delivery losses in the final quarter of the year through greater average order values and improved rider cost efficiency.

Alibaba Group Holding Limited (NYSE:BABA) is a Hong Kong-based provider of technology infrastructure and marketing reach. Founded in 1999, the company operates several businesses, including Taobao and Tmall, 1688.com, AliExpress, and Daraz.

While we acknowledge the potential of BABA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds.

Disclosure: None. This article is originally published at Insider Monkey.